Carrizo Oil & Gas, Inc. (NASDAQ:CRZO) will be selling 25,000 acres of its Eagle Ford portfolio to a confidential buyer for $245 million.
Previously, this land has produced 3,400 barrels of oil per day in the company’s third quarter this year – which was less than 10% of Carrizo’s total output for the entire Eagle Ford area – so, presumably, the company probably isn’t too upset about parting with this particular land.
The deal is expected to be completed by the end of January next year. It will leave Carrizo with 78,500 acres of the Eagle Ford area.
Carrizo has been planning to sell its non-core assets since the beginning of the year. The Eagle Ford divestment is one of several steps towards doing so (others include parts of Marcellus, Utica, and DJ Basin). The selling of these non-core assets will provide the company with $530 million, which will help it to improve its leverage metrics (when last announced, Carrizo had $1.7 million of debt). Selling its non-core assets will allow Carrizo to have a higher return in its production growth, as it has been left with the core oil and gas resources from the Eagle Ford, as well as the Delaware Basin, areas.
Featured Image: twitter
